There may be many complicated terminologies used in the blockchain and cryptocurrency industries. A lot of words require users to understand them, especially those without any previous experience or those who are new to the area.
The phrase "Seed Phrase," which is generated at random when cryptocurrency wallets are first used, is one of the terms that new users may be familiar with. It is an essential part of the security of asset storage.
What is Seed Phrase?
A seed phrase is a phrase used to access cryptocurrency on blockchains or in crypto wallets. It is also used to retrieve lost private keys.
When the cryptocurrency wallet is used for the first time, the phrase will be generated randomly. In order to prevent damage to files or hardware, users should write down these phrases for security. If they are misplaced, users can install new wallet software and re-access their assets using the saved seed phrase.
Additionally, a seed phrase is well-known by a variety of names, including "Backup Seed Phrases," "Recovery Phrases," or "Recovery Phrases."
Characteristics of a seed phrase.
The word used in the seed phrase is taken from a word bank of 2,048 words. Instead of using a long line of sequential numeric codes, it is a set of simple phrases made up of 12–14 words, such as "Two," "Green," or "Rich."
The concept behind using a simple set of phrases instead of a random arrangement of numbers and alphabets is to make it simple to take notes and to lower the possibility of human error. It is difficult to recall and access a code that uses numerous words.
How to create the seed phrase
Generally, "crypto wallets" are a service that includes the automatic generation of seed phrases. When setting up for the first time, it usually uses a particular mechanism that gives users few options if they want to manually customize the setting. The majority of users who agree to the one-time creation of seed phrases and require no more change can use this strategy.
Along with helping to develop the seed phrase, the application also contributes to the creation of an encrypted "vault" where the seed phrase can be stored while still maintaining the security of all digital assets. For example, the "Vault12" platform is an application that works with wallets and includes automatic data backup to improve user security.
Seed phrases must be kept as secure and private as possible
Seed phrase storage must be done in the safest and most private way because anyone with access to the seed phrases can duplicate and import the wallet to their own wallets. This explains why owners whose seed phrases are stolen end up losing their assets.
Private keys can be accessed by scammers using seed phrases. As a result, the private key is crucial in verifying who actually owns the cryptocurrency or blockchain address used in the transaction.
How can seed phrases be kept securely?
The main reason users use crypto wallets is to protect their private keys from hacking and cyberattacks. For accessing assets, the seed phrase is essential. Therefore, it will have a negative effect if it is misplaced or given to scammers. For this reason, users are required to keep their seed phrases as secure as possible.
Guidelines for keeping seed phrases secure:
- Taking notes. Users should write down their codes in the first step. Although it is simple to do, be cautious to keep notes or documents safe from damage caused by fire, water, and other hazards.
- Keep your seed phrases in a safe place. It should be somewhere where users can only access or know themselves. The private key is kept in a wallet at a certain level of security and is available for transactions, so most users do not frequently need to bring out their seed phrases for use. However, users should exercise caution, think carefully before choosing, and think about keeping seed phrases as private and secure as possible.
- Avoid storing seed phrases online, especially in the applications that connect to your cryptocurrency wallet, as they could easily be targeted by hackers. As a result, keeping their seed phrases offline can protect them from all kinds of cyberattacks.
Conclusion
Private keys and seed phrases are different. The blockchain's private keys can be recovered using the seed phrase, which is a simple phrase chosen at random. Users can manually or automatically create their seed phrases. Generally, the seed phrase needs to be generated during the initial use of the crypto wallet service or application and, crucially, it cannot be recovered. Users are required to store their seed phrases offline and hide them in a safe place.
Source:
https://www.coindesk.com/learn/what-is-a-seed-phrase/
https://cointelegraph.com/explained/what-is-a-seed-phrase-and-why-is-it-important
